Halifax special presentation of cheques... anyone have anything positive to say? ;)

Frank_Martin_2

I switched jobs six weeks ago and my employer paid me by cheque this first month. It came from their accountant who was slow to send it then posted it second class - at night - and so it only arrived last Thursday.

We're talking a pretty big cheque here - £3334. I'm with Halifax and paid £12 for the cheque to go under 'special presentation', which basically means they send it first-class to the issuing bank (Barclays) and then phone them the next day - after 2pm - and if it's there and Barclays okay it, it's cleared immediately.

There's no guarantee, and I'd assumed I'd be bloody lucky if the funds arrived on Friday, and they did not. Still, now that it's Monday and they're still not there, I'm getting very, very edgy indeed.

It doesn't help I'm beyond broke - as said, it's been six weeks since I've last had a salary payment - but I'm now very nervous about all this. What if it gets lost in the post? How long do you give it before I have to go back to my employer and embarrassingly ask them to cancel it and send another? What responsibility do Halifax and Barclays have?

The problem is the cheque is 'out there'. If it actually does get lost in the post - and despite the cliche, in my experience that very rarely happens - I'm stuffed.

What's really gutting is it would have cleared tomorrow or at worst Wednesday, I think, if paid normally, but that can't happen now because it's gone via a different system. Stupid, with hindsight, to have attemped this, but one is inclined to have faith in a system if it is made available to you. All Halifax has is a photocopy of the cheque and my signed agreement (a copy of which is all I have too).

Please, somebody tell me they've used special presentation with Halifax before and a delay of 3-4 days is entirely normal. I need to hear something positive.

cifpower

What is special presentation or special clearance?

To enable the recipient of a cheque to know as soon as possible whether it will be paid, they can ask their bank to specially present that cheque. Their bank then sends the cheque by first-class post directly to the paying bank, contacting them by phone on the following working day to confirm whether it will be paid. The payee may not receive the funds any sooner, but has the knowledge that there are sufficient funds to pay the cheque.


so if you lodged it on Thursday it will not clear til tomorrow

YorkshireBoy

I would have expected a cheque paid into my account last Thursday to have it's value (for interest earning purposes) showing on my account today (which is day 0 + 2).

The cheque would then normally clear for withdrawal two days later (day 0 + 4) on Wednesday, although I understand some banks (Halifax included?) clear for withdrawal a day early. Not sure if they will for a £3K+ cheque though?

The cheque doesn't 'clear for fate' until day 0 + 6, which would be close of business Friday this week.

I'd never pay for 'special presentation' myself though, because I consider it to be a waste of money.

Frank_Martin_2

cifpower wrote: »

What is special presentation or special clearance?

To enable the recipient of a cheque to know as soon as possible whether it will be paid, they can ask their bank to specially present that cheque. Their bank then sends the cheque by first-class post directly to the paying bank, contacting them by phone on the following working day to confirm whether it will be paid. The payee may not receive the funds any sooner, but has the knowledge that there are sufficient funds to pay the cheque.


so if you lodged it on Thursday it will not clear til tomorrow

Yeah, that's not how it works. Halifax would have cleared the funds on Friday if Barclays had given them the all-clear. Barclays are saying they haven't received the cheque - now in three postal days - which is ringing all kinds of alarm bells.

I think the reality is they have received it but because there's no money in it for them they aren't bothered about processing it.

I hope it does clear tomorrow, but the issue I have is that the cheque is 'out there' and could be for an indefinite amount of time.

Frank_Martin_2

YorkshireBoy wrote: »

I would have expected a cheque paid into my account last Thursday to have it's value (for interest earning purposes) showing on my account today (which is day 0 + 2).

The cheque would then normally clear for withdrawal two days later (day 0 + 4) on Wednesday, although I understand some banks (Halifax included?) clear for withdrawal a day early. Not sure if they will for a £3K+ cheque though?

The cheque doesn't 'clear for fate' until day 0 + 6, which would be close of business Friday this week.

I'd never pay for 'special presentation' myself though, because I consider it to be a waste of money.

Neither would I from now on. Again, however, that's not how it works, at least according to Halifax. They post it first class and call each day - always after 2pm - and if Barclays has the cheque and says the funds are there, Halifax credits my account immediately.

My concern, again, is that this cheque has gone missing and I'm very much stuck then between a rock and a hard place.

YorkshireBoy

Frank_Martin wrote: »

...that's not how it works, at least according to Halifax.

And do you have this in writing, or is it the guesswork/opinion of a perhaps ill-informed staff member?

They post it first class and call each day - always after 2pm - and if Barclays has the cheque and says the funds are there, Halifax credits my account immediately.

With cleared for withdrawal funds?

My concern, again, is that this cheque has gone missing and I'm very much stuck then between a rock and a hard place.

As you're at the mercy of the postal system, this is yet another reason for not spending the £12.

To be fair, Halifax do say "Special presentation of cheque (clearance more quickly than usual)" in their understanding charges section, but I very much doubt, and especially for £12 and the additional admin involved, they will credit your account with cleared for withdrawal funds within 24 hours of depositing a cheque with them.

Frank_Martin_2

YorkshireBoy wrote: »

And do you have this in writing, or is it the guesswork/opinion of a perhaps ill-informed staff member?With cleared for withdrawal funds?As you're at the mercy of the postal system, this is yet another reason for not spending the £12.

To be fair, Halifax do say "Special presentation of cheque (clearance more quickly than usual)" in their understanding charges section, but I very much doubt, and especially for £12 and the additional admin involved, they will credit your account with cleared for withdrawal funds within 24 hours of depositing a cheque with them.

I have it in writing. As soon as the cheque is okayed by the other end (Barclays) it is cleared immediately.

As said, I didn't realistically expect it to clear within 24 hours (even though theoretically it's possible) - but it's now been three postal days, or 48 hours of working time, and Barclays say they haven't received the cheque. That's the worrying part - the indefinite not knowing.

Mikeyorks

You've either misunderstood ..... or Halifax have mislead you.

'Special presentation' (Halifax or any other Bank) is meant to assure you the funds are there to meet the cheque .... or otherwise. It does not expedite clearance of the cheque (and therefore value into your account). In fact - as it's posted to the drawer's Bank - it has the potential to slow it down a little. In particular if the drawer's Bank is in London - as postal services in the capital are rubbish.

Basic process : your Bank sends the cheque to the drawer's Bank. On receipt the drawer's Bank should check adequate funds in the drawer account and ring your Bank accordingly. If positive - the drawer Bank will ringfence the funds in the drawer account. Your Bank should advise you of the outcome. Drawer's Bank then processes the cheque into Clearing and it will be the normal 3 days from that point until the funds hit your account.

You only use special presentation if you're suspicious of the cheque being met. The sole benefit is the bit I've italicised.

http://www.apacs.org.uk/resources_publications/faqs/cheques_6.html

YorkshireBoy

Mikeyorks wrote: »

It does not expedite clearance of the cheque (and therefore value into your account).

So what about Halifax's claim of "clearance more quickly than usual" Mike?

Frank_Martin_2

Mikeyorks wrote: »

You've either misunderstood ..... or Halifax have mislead you.

'Special presentation' (Halifax or any other Bank) is meant to assure you the funds are there to meet the cheque .... or otherwise. It does not expedite clearance of the cheque (and therefore value into your account).

Yes it does. Quote, from the signed agreement:

"Once we have received agreement from the Drawee Bank that the cheque will be paid, your account will be credited and funds will be available for withdrawal immediately."

The document also states that while they do not guarantee it, it can clear in a day.

Here's how it works:

1. I pay £12 for the cheque to be express cleared (what they call 'special presentation', which I accept may be different at other banks)
2. The cheque is sent first class that day to the drawee bank
3. Halifax call the next day - after 2pm - and see if the cheque has been received.
4. If so, and the cheque is good (i.e., funds at there to cover it), Halifax credits immediately.
5. If not, they call back the next day (after 2pm) and so on.
6. After four days they call me to discuss options.

My concern is primarily that the cheque has disappeared in the post, which is something I'm also suspicious about as it's a well-known BS cliche for a reason. If I knew it would take five days, then fine - I'll find a way to cope. But 'anytime' is a frickin' nightmare.

I realise both of you chaps are trying to help but this is how it works with Halifax. Well, on paper at least, which of course is a lot of the point.

Mikeyorks

Apologies - late tea.

YorkshireBoy wrote:

So what about Halifax's claim of "clearance more quickly than usual" Mike?

Frank_Martin wrote:

Quote, from the signed agreement

Don't understand the 'clearance more quickly' .... as that is simply incorrect. The cheque has to clear via National Clearing despite it is presented directly to the Drawer Bank. There is a facility whereby if the payee and drawer both have accounts at the same Branch - an internal credit can be generated and short-circuit Clearing - but rarely the case, and certainly not here.

However Frank appears to be quoting (your account will be credited and funds will be available for withdrawal immediately) from an authoritative source - so I can only assume Halifax have decided to voluntarily allocate funds in special presentation cases? This despite Clearing is still underway (but they are guaranteed funds - as the unwritten bit is that the drawer bank will ringfence prior to Clearing).

It's not my experience either in business or personally. Personally I've only specially presented one cheque (via Halifax) 2 years ago from a local trader who was giving me the run around. The money was ringfenced by his Bank the following day - but it was a further 2 working days before I had cleared funds. Which was my clear understanding of the process .. and what happened in reality.

If Halifax are now being more amenable and actually giving you a bit more for your £12 .... it's not being widely publicised. This is the most open bit on their website :

If you want to be sure that a cheque has been paid before 6 bank working days have passed, you should ask us to deal with the cheque by our ‘Special Presentation’ service. If you use this service and we confirm to you that the cheque has been paid, you can be sure that the funds are available for withdrawal. You should use this service where it is particularly important for you to know that the cheque has been paid, for example, if the cheque has a high value

...... and I would read that (my underline) as saying exactly what I said in my original (special presentation is for certainty - not for advanced value). But - Frank's quote does suggest that 'has been paid' .... should read 'will be paid' .... and Halifax are prepared to stand to the funds in the interim? Interesting .... so I trust the cheque turns up quickly and it's not the fact that Halifax now don't advise until 2 days after the drawer Bank receives the cheque? Which is the only way I make sense of the quote immediately above!